Chinese Investigate Spending in Scandal

By

Lingling Wei And

Dinny McMahon

Updated April 19, 2012 6:49 a.m. ET

BEIJING—Authorities are questioning billions of dollars of government spending in the city of Chongqing launched under fallen leader Bo Xilai, according to people familiar with the matter, in a direct challenge to his state-heavy, populist programs that drew interest from across China.

Chongqing's new leaders have launched a "cleanup" of government investment projects, one local financial official said—projects that...